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Today’s companies have a multitude of ways to engage with buyers, through a comprehensive “Go-To-Market” (GTM) strategy. Most often, many companies start with a combination of traditional inbound marketing and outbound sales strategies. However, increasingly, these two simple “go-to-market” methodologies are becoming less effective.
The simple reason for this? Buyer behaviours are shifting. Customer trust in companies is diminishing, making standard go-to-market messaging less effective at converting leads. Consumers are less dependent on sales teams to “guide” them towards the right solutions for their needs.
They’re handling more of the buying cycle themselves, searching for their own evidence that they can trust a specific business, product, or service. More often than not, trust is established through the right connections with third parties. In fact, one study found that 16% of customers have more trust in “indirect sources” of information (like partners) than they do in vendors.
This is prompting revitalised interest in the concept of “partner-led growth” for GTM strategies.
“Growth” is a common goal of many business leaders, and there are various ways to adapt your GTM strategy to pursue growth. Some companies focus on “product-led growth”, allowing features and capabilities of their solutions to drive opportunities for them. Other organisations experiment with founder-led growth or even community-led growth strategies.
Partner-led growth focuses on adopting a business strategy that relies on external partners to help your company drive sales, increase brand awareness, and boost revenue. It’s a common way for companies to respond to the growing “Who Economy”, in which consumers are beginning to ask not “How can I solve [problem]?” but “Who can help me solve [problem]?”
In a world where consumers are presented with ever-increasing amounts of data and content, intended to help them choose what they should purchase, they’re on the hunt for a truly trustworthy voice.
Partner-led growth strategies allow companies to increase the number of credible voices recommending their solutions and products to consumers, increasing their chances of sales.
There are various ways to approach partner-led growth. Companies can experiment with a host of indirect selling programs, from setting up affiliate programs to designing referral systems. Some of the most common options chosen by B2B companies in 2024 include:
Channel partners include value-added resellers (VARs), distributors, system integrators, consultancies, and agencies who work alongside your company to deliver your solution to a wider range of consumers. These “connections” give companies more routes into their target market, allowing organisations to leverage the established relationships resellers already have with a specific segment or group of buyers.
Ecosystem-led growth is a sub-segment of partner-led growth, wherein companies join forces with a wide range of interconnected companies, organisations, and individuals on a robust go-to-market strategy. For instance, Microsoft works with an ecosystem of partners to deliver technology to businesses and address various use cases, from unified communications to cloud computing. Some ecosystem companies even integrate their solutions, to create new full-stack offerings.
Referral programs are a unique type of partner-led growth strategy, which involves activating existing customers or close partners (like influencers) and asking them to recommend your company’s products or services to someone they know. Usually, referrals result in rewards and incentives for both the individual or group issuing the referral and the new customer.
Affiliate programs in a partner-led GTM strategy are performance-based marketing methods where individuals or other organisations broadly promote a company’s services and products through a range of channels. These “affiliates” earn a commission for every sale or lead they generate, leading to a win-win experience for both companies and their teams.
Resellers are the third-party companies and individuals who actively purchase products or solutions from a company, and then resell them to their end customers, usually adding a profit margin or themselves. There’s a lot of variety in how reseller transactions can occur. For instance, resellers can access white-labelled solutions, branded technology, or specific bundles to sell to their customers.
Partner-led growth isn’t a new concept in the GTM landscape, but it is something that’s becoming increasingly crucial in today’s world. One company even found that 66% of brands say they’re now using partner-led growth for at least one of their GTM efforts.
The primary reason for this is that as B2B buyer journeys grow more complex, and companies reduce their budgets, organisations need more help convincing buyers to actually make a purchase. The same report mentioned above found that partner-sourced opportunities have a 46% higher win rate, and benefit from an 11% shorter time to close.
Partner-led growth strategies work in 2024 because they:
Many modern go-to-market strategies are rooted in data analysis and reporting. Companies need to maintain an agile and holistic view of their competitors, customers, and market opportunities to stay ahead of the curve. Unfortunately, accessing large amounts of valuable data can be complex, particularly as things like “third-party cookies” are phased out of digital channels.
Working with partners, in a range of formats, gives companies access to a broader database of valuable insights. It can help with the development of more personalised marketing campaigns and sales strategies, more effective loyalty, and retention programs, and improve a company’s ability to differentiate their solution from competing offers.
As mentioned above, consumers no longer trust companies (and their sales teams) to keep their best interests at heart when recommending products or services. They know the end goal of any company is to “get a sale”, which means they’re unlikely to take your recommendations to heart.
However, buyers do trust the opinions of other companies and individuals who they believe don’t have as significant of a stake in the core organisation’s growth. A consumer is more likely to believe a reseller who recommends a product out of a range of competing solutions because they believe they have a more objective view of the market.
While leads in the modern world can be sourced in a variety of ways, partner-referred leads, from affiliates, resellers, and other teams are some of the most valuable. One report from HubSpot found that around 50% of companies made up to 26% of their revenue from partner-referred leads alone.
Because referred leads are more likely to trust your company, they’re less likely to have long buying cycles, and they’re more likely to make larger purchases. What’s more, depending on your strategy, your referred leads could even go on to play a part in your GTM strategy. For instance, your most loyal customers can turn into advocates for your brand, participating in affiliate and referral programs.
Ultimately, partner-led growth delivers a number of benefits to companies. However, there’s more to excelling in this environment than simply having a partner program. To ensure you’re getting the right results, you’ll need to:
As customer trust continues to dwindle in 2024, a partner-led growth strategy could open the door to significant increases in revenue, customer acquisition, and buyer loyalty.
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